Come by and meet Lori Williams, Amanda Fenn Diaz, and Jennifer Hightower at Booth #50
USEO at IAOA 2019
U.S. E & O BROKERS WOULD LIKE YOU TO SIGN UP FOR OUR MONTHLY NEWSLETTER FILLED WITH AGENT INFORMATION AND TIPS ON E & O PREVENTION AND PRODUCTS
Over the past 25 years in business, U.S. E&O Brokers has developed strong relationships with multiple carriers that will quote your E&O, EPLI, Crime, D&O and Cyber Liability coverages.
We are a retail agency like you! Our offices are coast to coast. We take your agency’s business seriously and know how important your time is while renewing these very important coverages.
WHAT IS HAPPENING IN THE E&O MARKETPLACE FOR INSURANCE AGENTS
1. Admiral is non-renewing small accounts in their “ADX” program. In order to now qualify for the Admiral platform, your premium must be at least $5,000.00 Do not assume you are getting a non-renewal notice. You have been notified.
2. BEWARE OF ‘ONLINE’ E&O CARRIER OPTIONS!
a. It may NOT include coverage for your firm name, independent contractors or other licensed producers. Be careful!
b. Be on the lookout for higher retention on certain products you market or sell.
c. Verify that Punitive Damages are covered 100%. These programs may EXCLUDE or only offer a sub-limit for punitive damages
d. Do not assume because a policy form is directed at a certain agent base the policy has more coverage than your current policy. Make the “specified provider” provide a comparison. Call us and we will help you if no response.
e. Always note that Additional Insureds may not be able to be added by endorsement. Ask first if you are binding an online product.
f. Beware some policies are fully earned at binding.
Sign up for the February Newsletter and we will give you the real facts!
Amanda Fenn Diaz
The need for Cyber Liability coverage should continue to be at the top of your coverage checklist for your business. Make sure you confirm the following items:
- Cyber Breaches can occur anywhere in the world and outer space.
- Verify the notification requirements in your state or states in the event of a breach.
- Make sure fines for failure to notify a breach which has occurred are covered under your cyber liability policy.
- DO NOT rely solely on either your Business Owners Policy for limited coverage or the sub-limited coverage on your E&O policy – these policies were not built to respond to all cyber allegations or in some cases demands for ransom.
- Average costs to monitor customers who have been breached range from $150 per file to $800 per file. Use cyber calculators to determine whether the limits of liability you will need are met or available.
- Ransom attacks have hit insurance companies and many financial entities. Paying out of your own pocket is not a wise decision and attorneys who specialize in ransom attacks are very expensive. Make sure your Cyber Liability policy covers ransom demands.
- Many states are now requiring that agencies have cyber security training and recovery plans in place. Know your state requirements and be pro-active!
- Terms you need to look for in your coverage include “Duty to defend” and “Pay on behalf” policy wording. Watch a video on www.useo.com
Learning from the past by studying the top claims by type is a very interesting trend that we follow at U.S. E & O Brokers. In 2018, the biggest heartache was underinsured property. Customers seeking lower than full value need to sign to decline higher coverage. Agencies have many tools today to verify values of homes. Remember, a home on direct bill for more than 3 – 5 years with no agency follow up to review coverage can be a disaster if the homeowner had a claim. ( Think about how much change can happen to a policy – maybe it was bound with a higher than normal wind deductible, but now a lower deductible was available for a small change in premium). Mortgage closings are notorius for trying to get a home closed at a certain deadline and certain financial parameters with the lender. This can leave a homeowner with a higher deductible so the closing could occur. Of course, you were supposed to lower it after the closing by endorsement.
MOST FASCINATING CLAIM in 2018? Sign up now to see the details in the February Newsletter!
Don't forget to sign up for our February newsletter to get the real E & O facts!